Scottish Equitable Protect adds five-year reviewable rates across critical illness range

Scottish Equitable Protect is adding a five-year reviewable rates option on critical illness cover within its mortgage and business protection menu products, which means that this option is now available across the company&#39s entire critical illness range.

The new option means that IFAs now have the choice of recommending rates which are guaranteed for five years, and then reviewed and guaranteed on a five-year cycle thereafter, or guaranteed rates, which are guaranteed to remain the same throughout the term of the critical illness policy.

Scottish Equitable Protect believes it is one of the few providers to offer this choice on such a comprehensive basis. In addition to the five-year reviewable rates option, the company also offers current costed rates, where the premium is reviewed on an annual basis according to the age of the insured , on its business protection menu product.

Guaranteed rates are rising on an industrywide basis, as advances in medical science prompt an increase in premiums. As the critical illness market is going through a period of significant change, Scottish Equitable Protect aims to offer IFAs a realistic alternative to guaranteed rates.

Scottish Equitable Protect believes that five-year reviewable rates may make cover more affordable for clients. For example, for a 30 year old male non-smoker, for critical illness cover, including total and permanent disability cover of £100,000 for 25 years, for five-year reviewable rates premiums would be £20.50 per month compared with £26.09 per month for guaranteed rates.

Scottish Equitable Protect head of marketing Heather Armstrong says: “It is vital for insurers to continue to provide critical illness cover at a realistic price, despite the rise in guaranteed rates. Adding five-year reviewable rates across our entire product range means that IFAs now have an extra option to offer their clients, which may prove more affordable. Scottish Equitable Protect offers one of the most comprehensive choices of critical illness premiums in the IFA market. The landscape is changing in the critical illness market and products must evolve to take account of this.”

Scottish Equitable Protect is also adopting the new wordings for heart attack and cancer definitions which were recommended by the ABI in 2002 for adoption by May 2003.

For further information about Scottish Equitable Protect&#39s range of critical illness and other protection products, IFAs should call 0800 600 1402 or visit